1 AMERICAN ENERGY MINERAL Energy project & Mining company American Energy Mineral Plc. Developing Power Generation 1 E American Energy Mineral 2 C ontent 1. About us 2. Coal-fired power plant project 3. Coal mining operation in Santander 4. The coal market 2 E American Energy Mineral 3 C ontent 1. About us 2. Coal-fired power plant project 3. Coal mining operation in Santander 4. The coal market 3 E American Energy Mineral 1. About us 4 American Energy Mineral is a group founded in 2011, specializing in the development of a power plant and mining projects in Colombia. Currently, two projects are being developed by the company: the construction and management of a coal-fired power plant in Córdoba area and a coal mining operation in the concessions territory of Santander. The group owns thermal coal deposits in two areas in Colombia with resources of 361 million tons. Córdoba area: deposit of 143 millions tons intended to supply the coal-fired power plant. Santander area: 2 deposits of 218 millions tons ready to start production. Shareholding Details of the Parent Company MINORITY SHAREHOLDERS 17,5% American Energy Mineral Plc (AEM Plc) 100% American Energy Mineral Ltd AEM Ltd 100% MINERÍA CAPITAL 75,1% American Coal Santander Ltd ACS Ltd 100% ZOSTINA 7,4% CMR Colombia 4 E American Energy Mineral 1. About us 5 The AEM Project Description Currently AEM is developing 2 projects in Colombia a) Construction & operation of coal-fired power plant in Córdoba b) Coal mining exploitation in one of the Santander block a) Coal-fired power plant - Córdoba b) Coal mining exploitation - Santander AEM has signed an agreement with the one of the major Colombian companies for the generation, distribution and trade of energy, to construct and operate a coal-fired power plant which will be fueled by our coal (143 millions tons). Energy production is scheduled to start in 2018. Located in Santander, one of the block has estimated resources of 128 million tons of bituminous coal of high calorific value. The company has all the licenses to start exploitation with an estimated volume of 360,000 tons / year (from the 5th year). 5 E American Energy Mineral 1. About us 6 Coal-fired power plant in Córdoba Coal mine operation in Santander Construction and management of a Coal-Fired Power Plant. The coal-fired power plant will be located in the mine mouth of the company's property deposit and will provide the coal that will be use to fuel the power plant. AEM has ownership over two coal blocks in the Santander region with reserves of 218 million tons of coal. One of them, “La Estrella” block, has 128 million tons of coal and the license to operate the mine. Santander area Coal Reserves 143 Million tons (37 Mill. Proved) 7 Power plant capacity Estimated 300 Mw 6 5 4 1 2 Transport electricity line 500 KV transport under our concessions 6 Estrella Block 3 E American Energy Mineral 7 C ontent 1. About us 2. Coal-fired power plant project 3. Coal mining operation in Santander 4. The coal market 7 E American Energy Mineral 2. Coal-fired power plant project 8 The power plant will be located in the Córdoba department in Colombia close to the mine concessions of AEM Coal concessions Cordoba 111M tons 143 MM tons Santander 347M tons 8 E American Energy Mineral 2. Coal-fired power plant project 9 Unique characteristics for coal-fired power plant: deposit of coal to supply the power plant, connected to electricity transmission line, and proximity to water sources Lines 500 KV Lines 230 KV 9 E American Energy Mineral 2. Coal-fired power plant project 10 Electricity transmission network in Colombia and neighboring countries Coal power plant Systems of electricity grid connection Substation Electricity grid connection Electricity grid connection Transmission lines Future coal-fired power plant 10 E American Energy Mineral 2. Coal-fired power plant project 11 Strategic Partnership AEM is developing the coal-fired power plant in partnership with the largest generator, distributor and trader of energy in Colombia Power plant SPV (AEM vs partner) Feasibility study 2015 Mining Financing study pre-project EIA Start up construction power plant 2016 Mining operation 2017 Obtaining EIA Financing power plant construction Start power generation 2018…. prepare mining operation 11 E American Energy Mineral 2. Coal-fired power plant project 12 Project Timeline Projected Done STEP 1: Power plant development Exploitation Licenses and EIA of the coal mine Evaluation of coal reserves to supply the coal-fired power plant STEP 2: Pre-project Mining and power plant predevelopment project 2014 Financing Pre-project of power plant. Feasibility study 2015 STEP 3: Exploitation EIA Licence, financing power plant and Construction of the power plant and operation 2016-2035 + Energy company Partnership 12 E American Energy Mineral 2. Coal-fired power plant project 13 There are three models to sell the electricity produced in Colombia Realibility charge • The state agrees to purchase the power generated during 20 years • The prices are fixed through energy auctions • A project of power plant becomes a “project finance” Commercializing • There are 28 pure commercializing companies • The demand is committed daily • The prices are fixed in the energy stock exchange daily Private contract • The large mines need high quantities of energy (Kv) • Prices are set between the two companies • Contracts are signed for long periods 13 E American Energy Mineral 2. Coal-fired power plant project 14 The company is owner of the coal mine concessions where the power plant will be located, with 143 million tons in estimated resources (37M proven) Characteristics Description Resources proved 37 MM tons Total resources estimated 143 MM tons Mining type Underground Annual production 1 million tons Average calorific value 10.500 (BTU/lb) 14 E American Energy Mineral 2. Coal-fired power plant project 15 Access The concessions have paved routes that permit access by industrial vehicles. Route 74 is the main thoroughfare along the concessions. 15 E American Energy Mineral 16 C ontent 1. About us 2. Coal-fired power plant project 3. Coal mining operation in Santander 4. The coal market 16 E American Energy Mineral 3. Coal mining operation in Santander 17 AEM is also owner of coal mine concessions within the province of Santander Cordoba 111M tons Santander 218 M tons 347M tons 17 E American Energy Mineral 3. Coal mining operation in Santander 18 The company’s mine properties consist of two blocks: the first (Bloque La Estrella) with a surface area of approximately 3,500 hectares (8,648 acres) comprised of 3 concessions with resources of 128 million tons of coal and another block (Santander Semi-block) comprised of 4 concessions spaced apart over a surface area of 3,400 hectares. “Santander semi-Block” “La Estrella” Block 18 E American Energy Mineral 3. Coal mining operation in Santander 19 “La Estrella” block has all permits and licenses to start production Bucaramanga area Concession: La Estrella 19 E American Energy Mineral 3. Coal mining operation in Santander 20 The block has direct access and paved public roads for both internal transport as well as Atlantic cargo ports 20 E American Energy Mineral 3. Coal mining operation in Santander 21 La Estrella deposit 22,6 million tons Key Figures 128 millions tons Thermal coal 35,1 million tons Underground operation 12.500 BTU/Lb average 70 million tons Less than 1% sulfur 360.000 tons/years coal prod. 21 E American Energy Mineral 3. Coal mining operation in Santander 22 Project Timeline To be done Done STEP 1: Mining development Exploitation Licenses and EIA Evaluation of reserves STEP 2: Coal mining exploitation Mining development 2012-2014 Financing the mine operation Start the mining 2015-2035 22 E American Energy Mineral 3. Coal mining operation in Santander 23 Current Status 1 The area is mapped and studied in depth 2 The Concession work plan is registered in the ANM 3 4 The Concessions environmental license are already issued by the CAS 23 Ready for Mining E American Energy Mineral 3. Coal mining operation in Santander 24 Description LOCATION San Vicente de Chucurí (In the south of Bucaramanga) Saving on cost in the time of opening a mine Connected routes adapted for trucks Access to mine mouth for trucks of 40 mil/tons ENVIRONMENT Rural area with high development potential Best production indicators High local acceptance to mining Low environmental impact DEPOSIT Underground mining with controlled production costs High calorific coal (12.500 – 13.000 BTU’s) This coal obtains the best selling prices and a wider range of clients Low sulfur content ( < 1%) 24 E American Energy Mineral 25 C ontent 1. About us 2. Coal-fired power plant project 3. Coal mining operation in Santander 4. The coal market 25 E American Energy Mineral 4. Coal market 26 Annual GBP Annual CPI In 2013 Colombian GBP grew 4,3% The Consumer Price Index at October 2014 (Inter-annual) was 3,25% 8,00% 10,00% 6,00% 8,00% 6,00% 4,00% 4,00% 2,00% 2,00% 0,00% 0,00% 2008 2009 2010 2011 2012 2013 2014 * Data DANE 26 E American Energy Mineral 4. Coal market 27 Rising coal production 6º exporter In 2012 coal production in Colombia reached 89.2 million tons Colombia exports 76% of coal production * Data DANE 27 E American Energy Mineral 4. Coal market 28 Weight annual GDP Weight mining GDP The coal market in 2013 represented 1.5% of Colombian GDP The coal market in 2013 represented 60% of the mining GDP * Data DANE 28 E American Energy Mineral 4. Coal market 29 Evolution of coal Price Mining royalties The price of coal is increasing 8% annually Coal mining represents 90% of mining royalties paid to Colombia government * Data DANE / ANH 29 E American Energy Mineral 4. Coal market 30 The evolution of the carbon market - key figures Macro Key Figures Period Value Jobs coal sector 2005-2011 +42,2% GDP coal Colombia 2005-2012 +33,3% FOB price Colombia 2005-2013 +64,3% Production in Colombia 2005-2012 +56,4% Global energy demand 1990-2011 +49,2% 30 The main indicators that measure the economy related to the coal industry have undergone significant growth in recent years. This growth has led Colombia to become one of the leading producers and marketers in the region. The CPI rose an average of 4.25% annually from 2005 thru 2012 (being the industrial CPI of 2.25%). E American Energy Mineral 31 Spain Colombia Ireland. Madrid Paseo de la Castellana nº 135, 7ª planta. 28046 Madrid-España Bogotá Calle 93 No. 12 - 54, Oficina 306, Bogotá – Colombia Dublín 6 Northbrook Rd, Dublin 6 Ireland Contact in Spain: Contact in Colombia: Víctor Sánchez Boris Córdovez Chairman & CEO Managing Director- Colombia [email protected] [email protected] Jorge Sanandrés Chief Financial Officer [email protected] 31 E American Energy Mineral
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